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WESTERN GAS RESOURCES OFFERS 1,400,000 SHARES OF CUMULATIVE PREFERRED STOCK

 WESTERN GAS RESOURCES OFFERS 1,400,000 SHARES
 OF CUMULATIVE PREFERRED STOCK
 DENVER, Nov. 12 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) announced today the public offering of 1,400,000 shares of $2.28 Cumulative Preferred Stock ($25 Liquidation Preference). The preferred stock has a five-year, no-call provision after which time the company may, at its option, redeem the shares for cash. The underwriting syndicate was lead-managed by Morgan Stanley & Co. Inc., with Donaldson, Lufkin & Jenrette Securities Corp. and Smith Barney, Harris Upham & Co. as co-managers.
 The net proceeds of $33.4 million to the company from the sale of the shares will be used for general corporate purposes, including funding the development of its Katy, Texas, natural gas storage facility. The Katy project, including pad gas, will cost approximately $65-70 million, of which approximately $23.2 million has already been expended by the company. The Katy facility will consist of a depleted gas reservoir capable of storing approximately 22 billion cubic feet of working gas, a related compressor station and a header system that will connect the facility to up to 13 area pipelines. The facility will have the capacity to deliver approximately 400 million cubic feet per day and is expected to commence operations in the summer or early fall of 1993.
 Additionally, Western recently renegotiated its $240 million bank lines from a borrowing base credit to a straight corporate credit tied to cash flow multiples and certain other covenants. The new credit structure increased the maximum potentially available total credit to about $290 million and more adequately reflects Western's growth and strong financial position. Also, Western placed $50 million of senior debt through Prudential Capital. The debt was comprised of $25 million of seven-year average life maturities at 7.51 percent and $25 million of 10-year average life maturities at 7.99 percent. The funds were used to reduce outstanding revolver debt.
 Western indicated that all of these financial activities are better positioning the company to finance additional acquisition and grassroots opportunities as they arise. Bill Sanderson, president of Western, stated, "We are positioning Western to continue its stated goals of growing the company's operating cash flow and increasing stockholder value."
 Western Gas Resources is a leading independent gas gatherer and processor with operations in major gas-producing basins in the Rocky Mountain, Gulf Coast and Southwestern regions of the United States. The company owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids.
 -0- 11/12/92
 /CONTACT: Ron Wirth of Western Gas Resources, 800-933-5603/
 (WGR) CO: Western Gas Resources Inc. ST: Colorado, Texas IN: OIL SU: OFR


MC -- DV001 -- 0067 11/12/92 09:52 EST
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Publication:PR Newswire
Date:Nov 12, 1992
Words:450
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